Gov. Jennifer Granholm issues directive to cut spending

Gov. Jennifer Granholm on Tuesday issued a directive to reduce state spending on contracts and limit the state’s hiring of contractual and temporary employees.

The governor’s directive aims to reduce contract spending by 5 percent to 10 percent, places a moratorium on new or expanded personal services contracts, and curtails the use of temporary employees.

The directive also calls on the Office of the State Employer and the Michigan Department of Management and Budget to regularly monitor hiring requests and state spending, to meet the directive’s requirements.

The action is the latest in steps to address declining state revenue and state budget problems.